Weigh up selling options

01-03-2007 | Not Specified

There are arguments on both sides to the fence when it comes to selling the farm privately.

Property Brokers Palmerston North rural manager Richard Anderson says that emotional factors often cloud the reality.

“People have been living, breathing, working the farm all their lives and develop a real attachment to it. ”

Because of that it can be hard for them to cut to the more practical aspects of the sale. This is where and agent can be useful.

He says a middleman will have your best interests at heart, without the emotional attachment.

Another plus is potential buyers can feel free to approach the agent with concerns or comments about the property, and not be afraid of upsetting the vendor.

Waikato PGG Wrightson Real Estate agent Lance Kerr says the privacy of the sale is a reason people choose to sell themselves, with the amount that a party tenders and the price the vendor receives staying confidential.

However there is a major risk involved with misjudging the market value of a farm.

“I’ve seen people conduct a private sale with a neighbour, and they think they have got a really good price. Then word gets out on how much it went for and they realize it has gone under value,” Kerr says.

Often the elderly are more susceptible without an agent. An “in-your-face” purchaser can tell a story, offer a cash price and to someone who is trusting and wants less stress, it can seem like the way to go. Suddenly the sale has gone through $500,000 under value, and the family has lost part of their

inheritance.

Anderson says in the past with a buoyant market, it was easy to list a farm and sell quickly, but at the moment there are fewer buyers around and vendors are more at buyer’s mercy.

He cautions vendors to weigh up their options.

“Selling privately has a feel-good factor for the vendor, but did they get the maximum price?

“Once it is sold it is sold, there is no chance to come back. ”

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